Rent of Nagpur civic body shops to increase 8-10 times

NAGPUR: Businessmen using Nagpur Municipal Corporation (NMC) shops and properties should be ready to shell out higher rent, as the cash strapped civic body is all set to hike rent by up to 10 times. Confirming the move, standing committee chairman Sudhir Raut said the decision was taken in a standing committee meeting on Thursday.

The standing panel has decided to revise the rent of NMC owned commercial establishments, especially shops, platforms and open spaces. The revision of rents will be fixed on the basis of Ready Reckoner rates, he said. Citing an example, he said the rent of Gokulpeth market will increase by 10 times, while the rent of NMC property at Kamal Chowk will be revised by 7 to 8 times.

Statistics available from the market department show that NMC owns 4,431 commercial establishments, including 2,485 shops, 834 galas and 1,419 open spaces in prime locations like Sitabuldi, Gokulpeth, Itwari, Cotton Market etc. The total revenue NMC earns from these commercial establishments is a modest Rs4.79 crore for the entire financial year.

A senior official told TOI that NMC has allotted 75 shops, 52 galas and 112 open spaces at Gokulpeth Market. The minimum rent of the shops is Rs390 per year and maximum Rs40,000 per year. The officer explained the maximum rent of Rs40,000 per year was due to transfer of ownership of a couple of shops, which are around 350-500 sq ft. As per norms, the rent has to be hiked every year, but NMC has not taken any efforts to revise rents and as a result shopkeepers continue to pay a low annual rent.

Such instances are not restricted to just Gokulpeth. NMC is collecting rent of Rs2 per sq ft for a few shops at Lakadganj Loha Oli, the well-known commercial area for iron and wood. The rent of a shop measuring 262 sq ft in the wholesale grain market — Itwari Kadbi Bazaar — is Rs5,040 per year. The rent in other market places like Yeshwant Stadium too is very low.

The revision of rates is expected to increase NMC revenue from the market department by almost 5 times, from the existing Rs4.79 crore to Rs26 crore, said the official.

Camp for NMC market tenants

A camp for license holders of NMC owned markets has been organized at Panjabrao Deshmukh Hall on July 17 from 9.45am to 5.45pm. This will provide an opportunity for the license holders to renew their market shop license, which has not been done for a year. They have been told to present the prescribed application and necessary documents. The documents will be checked and action will be taken within 15 days of the camp, with a renewed agreement sent within a month. A list of the necessary documents is available at NMC office in Civil Lines and Zone no. 1 to 10 in the market department. The license holders are requested to be present at the camp and take advantage of the opportunity.